News Column

Canadian Dollar Slides On Risk Aversion

June 25, 2014

OTTAWA (Alliance News) - The Canadian dollar fell against most major currencies in early European deals on Tuesday, as traders became risk averse amid ongoing violence in Iraq, after Syrian warplanes bombed western Iraqi province of Anbar targeting Sunni insurgents, which killed at least 50 people.

US Secretary of State John Kerry traveled to Irbil, the Kurdish regional capital, to back the Iraqi government in its fight against militants storming across the country and to support the formation of a new national government in Baghdad by July 1.

The US crude inventories rose by 4 million barrels to 382.6 million barrels in the week to June 20, data from industry group the American Petroleum Institute showed on Tuesday. The official inventory data from the US Energy Information Administration is due today.

The loonie fell to a 5-day low of 1.4638 against the euro, compared to 1.4615 hit late New York Tuesday. The next possible support level for the loonie lies around the 1.47 zone.

German consumer confidence is set to improve in July, survey data from market research group GfK showed today.

The forward-looking consumer sentiment index rose to 8.9 in July from a revised 8.6 points in June, as economic expectations rose to a three-year high.

The loonie dropped to a 2-day low of 1.0751 against the greenback, after having touched a 5-1/2-month high of 1.0743 on Tuesday. If the loonie continues its decline, 1.08 is seen as next possible support level.

The loonie that ended Tuesday's trading at 94.85 against the yen slipped to a 5-day low of 94.74. The next possible downside target for the loonie-yen pair is seen around the 94.00 level.

Looking ahead, US final GDP data for the first quarter, durable goods orders data for May and Markit's flash services PMI for June are set for release in the New York session.

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Source: Alliance News

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